All Forum Posts by: Sheena Lee

@Amy Thatcher I would give them notice. All rent owed is due by Jan 1st or they must move out by that date. At least they are still in there for Christmas. You should really have a conversation with them though, in which you can direct them to services if needed.

@James Wise Great advice! Thank you very much!

I’m purchasing a triplex with existing tenants in all 3 units. I will be asking them to complete a form to obtain pertinent information about them. (I am not getting anything but names from the seller---he is very sloppy) 1) What info should I obtain—was planning to get full names, work info, phone (the obvious stuff). 2) In terms of social security numbers, do I have to explain to them why I am asking for this? I want to screen them properly and have this in case of eviction. Is this reasonable? I appreciate any other advice. Thank you!

@Marc DuLaney For the TriPlex we are buying, we based it on rental income. And future rental income. We plan to renovate as tenants move out and bring in more rent. There weren’t too many comps in our area anyway.

@Alex Kouvatsos I would not jump into something like this without knowing all the numbers. I want to know all expenses and have an idea of what renovations cost. Maybe it’s different for you because you would be living there, but for my 3 unit I am currently buying, I made the decision on price based on all the numbers. Did not go above that even though the seller also had other offers, one at full list price (we got it because the other offer had a contingency). If the building needs major work, consider that you may have to kick out all the tenants and pay the whole mortgage while renovations are going on. Look at worst case scenarios. If you are overwhelmed then move on.

After 4 weeks of exhausting negotiations, we have finally come to an agreement to purchase a 3-unit building! There are tenants in place for all 3 units. I would really appreciate any words of wisdom for us. Here are things I plan to do already: 1. Get all tenants info immediately (name/#/SS etc.) 2. Meet with them to go over their leases 3. Screen them/background checks 4. Set up a separate bank account to hold their security deposits and rent 5. Address any urgent complaints 6. Hired someone local for maintenance Any other suggestions to get off on the right foot?

Great thread! We bought our first house in 2010 for $300K. Lived in it and fixed it up over 7 years, and then refinanced. It was worth $400K! We kept the cash from the refi, used that on a down payment for our new house, and rented out the old one. We got the bug, and now are in the process of buying a triplex. 

@Samantha Miller could you do Airbnb instead?

@Bob Manning Hi! I’m also in NJ. I have a single family rental here and in the process of buying a triplex in PA. I’m also trying to get out of the medical field (I‘m a Physician Assistant). I’ve had my eyes on a 2-family here locally for some time but don’t have the capital to buy it myself... if you want to check it out let me know. NJ is quite expensive so consider partnering if you don’t have the capital yet. Also, PA is a short drive away and much more affordable so consider that as well. Good luck to you!

@Brandon Ribeiro Have you gone as far as getting preapproval? They will want to see all your funds. They may want to see leases too if you cannot afford the mortgage on your own.